The settlement with the Italian Astaldi, the would-be ‘builder’ of the Zagreb-Goričan highway, will save the state budget 20.5 million euros, while the settlement with Hypo bank regarding the case of Slavonska banka will save around 10 million euros or 20 percent of the compensation awarded by arbitration.
After Croatia lost both arbitration disputes, the Croatian Government decided to settle, and the DAB (State Agency for the Protection of Deposits and the Resolution of Banks) will pay Hypo bank 34.6 million euros in compensation due to inaccurately reported data in the balance sheet of Slavonska banka at the time it was sold, to be paid in 12 monthly installments, with the first due within 7 days from the date of signing the settlement agreement. The settlement also saved 4,901 euros in daily interest, which would have accrued from December 27, 2007, until the obligation was fulfilled. The DAB was also obliged to cover costs that would arise if minority shareholders sued Hypo for not making a public takeover bid. This cost, if it arises, will be borne by Hypo bank according to the settlement.
As the then Management of Slavonska banka is to blame for the rightly lost dispute, and no one has yet been held accountable for this, sources in the Government claim that they will suggest to the State Attorney’s Office to review the entire case and, if there is evidence for it, initiate criminal proceedings. Croatia lost the dispute with the Italian Astaldi because it terminated the concession agreement for the construction of the Zagreb-Goričan highway. According to the ruling, the Croatian government was to pay the Italians 64.9 million euros in ‘penalties’, but after losing the lawsuit, Croatia will pay the settlement amount of 44.35 million euros in three installments. The first will be paid on October 29, the second on December 15, and the third on March 1 of the following year.
